The U.S. Secret Service, in coordination with international law enforcement, has seized the website of Russian crypto exchange Garantex. Accused of facilitating illicit transactions for ransomware groups and darknet markets, Garantex was previously sanctioned by the U.S. and EU for its role in laundering billions. The exchange’s abrupt shutdown follows the freezing of $28 million in USDT by Tether. The crackdown signals an escalating financial war against Russia-linked crypto entities.
Key Points:
- Garantex website seized: U.S. Secret Service takes control following a federal warrant.
- Deep Russian ties: Garantex co-founded by Sergey Mendeleev & Stanislav Drugalev; later linked to Kremlin-affiliated figures. According to FinTelegram’s analyses, Garantex acted in coordination with and with the approval of the Russian government.
- Regulatory fallout: Estonia revoked Garantex’s crypto license in 2022 due to money laundering concerns.
- Illicit finance hub: The U.S. Treasury alleged over $100M in transactions tied to criminal enterprises like Conti and Hydra.
- European crackdown: EU recently sanctioned Garantex for connections to Russian banks.
- Tether’s role: $28M in USDT frozen before Garantex announced suspension of services.
Short Narrative:
The U.S. Secret Service, working alongside the DOJ, FBI, Europol, and other international agencies, has seized the domain of Garantex, a Russian crypto exchange long suspected of enabling cybercrime. Garantex operated freely despite U.S. sanctions imposed in 2022 after allegations of laundering €5B in illicit funds. Its deep ties to sanctioned Russian financial networks and cybercriminal syndicates made it a priority target for Western law enforcement.
While Garantex remained silent on the takedown, its official Telegram warned that Russian users’ USDT holdings were at risk, signaling that the platform’s financial infrastructure has collapsed.
Actionable Insight:
Western authorities are tightening the noose around Russia’s crypto-fueled financial networks. The takedown of Garantex, combined with Tether’s move to freeze assets, highlights the increasing collaboration between blockchain surveillance, regulators, and law enforcement. Market participants should expect further crackdowns on Russian crypto platforms operating outside compliance frameworks. The impact on Russia’s crypto liquidity is significant, especially as Garantex was a key venue for converting rubles into USDT.
Call for Information:
Are you aware of other crypto exchanges operating in the shadow of regulatory scrutiny? Do you have insights into Russian money laundering networks or entities circumventing sanctions? Reach out securely to FinTelegram via our whistleblower system, Whistle42.
